BREAKING NEWS: Dow-Kuwaiti joint venture collapses

Staff reports

A joint business venture between Dow Chemical Co. and a state-owned Kuwaiti company fell through in recent days.

The Kuwait government backed out of a proposed K-Dow Petrochemicals venture citing a major risk in the investment due to current crude oil prices and a worldwide financial crisis.

The collapse of the deal could threaten a possible acquisition of Rohm & Haas Co. that Dow had in the works.

The end of negotiations between the Kuwaiti government and Dow could affect some Dow Louisiana employees and units that produce polyethylenes. The merger potentially was to include the move of employees and units to the new K-Dow Petrochemicals that was to be created by the joint venture.

No comments officially have been made by Dow Louisiana.